- We downgrade both DBS and OCBC from Accumulate to NEUTRAL due to recent share price performance. We raise our target price for UOB from S$30.40 to S$36.70 and maintain our NEUTRAL recommendation
3-month SORA lowest in 41 months
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
Singapore loan growth holds steady above 6%
- Overall loans to Singapore residents, encompassing lending in all currencies to Singaporeans, rose by 6.6% y-o-y in November to S$873bn. This was slightly higher than the previous month’s growth of 6.5%. year-to-date25 loans were up 5.8% y-o-y. We expect mid-to high-single-digit loan growth in 2026, driven by a further recovery from the rapid decline in Singapore interest rates and the additional rate cuts anticipated for the year. However, the trade war may hamper this growth. The banks are guiding mid-to high-single-digit loan growth in 2026.
- Business loans increased by 6.4% y-o-y in November. Loans to the building and construction segment, the single largest business segment, rose 1.7% y-o-y to S$180bn. Meanwhile, loans to the manufacturing segment grew 35% y-o-y in November to S$27bn, slightly higher than October’s 31% growth.
- Consumer loans increased 6.8% y-o-y in November to S$345bn, marking the 23rd consecutive y-o-y increase since December 2023. Housing loans, which comprise ~70% of consumer lending, grew 5% y-o-y in November to S$243bn.
- Total deposits and balances, which include deposits in all currencies made by non-bank customers, grew by 7% y-o-y in November to S$2,026bn. In the Current Account and Savings Account, or CASA, the proportion rose to 19.7% (Oct25: 19.4%) of total deposits and grew by 16% y-o-y to S$399bn. We expect the CASA ratio to rise as the higher-interest fixed deposits mature and funds are shifted back to CASA.
Hong Kong loan growth continues to recover
- Read more at SGinvestors.io.
